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Nike, ServiceNow and SAP CEOs play a game of musical chairs



Soon because Tuesday morning under armor announced Kevin Plank is stepping down as CEO in January and then later in the day on Tuesday sort of late after a new Nike announced that CEO Mark Parker also stepping down in January he's going to be replaced by John Donahoe who is a Ward member at Nike he is also the CEO of Software Company called service now so he'll be he's been CEO there for nearly three years he's going to be leaving and and Bill McDermott who a couple of weeks ago stepped down or was forced out depending on which version of events you decide to believe he left sap after being CEO for nearly a decade he's now going to be the CEO service now so the musical chairs continuous. Let's let's start with Nike and shares down a little bit on the news and probably not a surprise when you consider Parker's been running this company since two thousand six and if you're a shareholder her under his tenure you have done very very well Oh yeah you're you're quite happy so parker was the second CEO at at Nike following tonight and he took over in two thousand six but there's probably been some I know there have been rumors at least that CEO succession at Nike is Being Thought About for instance three years ago after China chief Michael Sperling was promoted to President Product Marketing and that was his fifth promotion in ninety here so he's moving up the ranks pretty quickly people were wondering Oh is he being groomed as as the next successor but there was also C. C. O. exp Bronx and Brand President Trevor Edwards and the latter man gentleman especially with seen as as the primary contender but then a couple of years ago Edwards was forced out in March of two thousand eighteen amid amid allegations of inappropriate behavior and will leave it at that so Parker's a comment yes Yesterday during an interview that hey this has been months in the planning you don't do this just a couple of weeks is probably true but I'm I'm kind of wondering what the timing has to do with I mean under armor announces a plank stepping down and he says Oh maybe we want to get on that news to or is it more related to the drug doping thing that's I've been coming out and whether Parker knew about it or not and the speculation there or is it just hey today just happen to be the same day that all this other stuff was coming up yeah and and the drug doping thing that you mentioned that's a relief to Alberta Salazar coach ty did Nike over the last few weeks some stories have come out about that and then and then and the extent to which Parker knew about that so some some questions around that I find the timing fascinating because I just thought there's no way or you're going to have a very our time convincing me that this is a coincidence I mean all things being equal because Nike has been the clear leader in the category for so long and even plank has been very clear in his time at under armor you know running the company he was gunning for Nike the whole time right in most situations I would believe that under armor maybe got wind of this and they moved up their announcement and actually think in this situation I think it's the reverse I think that Nike may have just decided you know what we're gonNA announce this later this week or maybe we're we're going to tie to our earnings report you know what let's just do this right now so maybe when plank says okay I'm out in Percocet yes score column win column there we go so let's talk about Donohoe for a second I don't know a ton about him what I do We know is that his experience as an executive is very much in the tech space as I may have service now software company he was an executive at Ebay who is the CEO of EIB. Yeah the chief executive for years and made a bunch of acquisitions onto there so I think if you are a Nike shareholder again it's only down a couple of percentage points I don't think that's necessarily a knock on Donohoe I think that's more just Parker's done such a great job it's it's it's natural to see a trump a little bit but I think if you're if you're looking at the elevations donohoe it's it's with an eye towards his tech experience and Nike increasingly relying on technology to move product right and and and I think again the narrative is that that's why the White was named he has been a director for a couple of years at Nike who was the CEO of Ebay for seven eight years until Twenty fifteen is been the chairman pal he oversaw the spinoff of pay pal from Ebay but that was kind of forced upon him and Ebay by Carl ICAHN activision activision active what what's the word activism activism thank you but he's expected to come into Nike and use his tech savvy to probably continue the digital transformation that has really been driving some good results for Nike They've got their Nike plus membership they're getting being able to get more personalized in their advertising for that and they're seeing some big up responses to that and along with that awesome product tracking and inventory management a lot a lot of good things are happening with Nike from a Tech Perspective and I think Donna who's GonNa continue that maybe a better indicator Keke shareholders is what's happening with shares of service now because that's down about ten percent since it was announced go the donnas leaving let's move on to another great quarter for AAA same store sales such a crucial metric for any restaurant out there up eleven percent rent nearly two percentage points higher than expected the stock is down close to five percent today is that just because of the run that it has had to this point because it's been on an amazing tear it could be that well let me hit some of the points and then connect to that there were other numbers so cops I think that was the big I number and really kind of surprised eleven percent is huge when your restaurant seven and a half percent of that was on transactions that's more people buy more stuff three and a half percent was on average check with about two and a half of that coming from price increases last year but the fact that they're getting more digital orders and digital orders tend to be larger sized checks for that and that's the the present com is higher than what they've had all year q one ten percent Kutu now eleven present Q. Three though this little certainly make next to your harder harder to beat but that aside the digital thing is really going up they sought eighty eight percent increase in sales of digital orders and now there's like eighteen percent of total sales so that's pretty good and the rewards club is is really beginning to play into that and so they also said they're going to Open some more of there drive through and literally that's drive through you don't stop to order you just try to go and pick up pick up the stuff and that's tied into their didn't digital sales as well but why are the shares down five percent maybe it's well the the the the company's shares have had a fantastic runner up twenty percent since the any of June maybe investors saying hey that was a great quarter thank you very much and could take some money off the table maybe it's a bunch of the analyst not raising their their expectations AH bunch of analysts came out with higher price targets but nobody actually moved there from hold to outperform or market perform. to overweight or whatever the languages but you look at the job that Brian Nickel has done as CEO and Yeah quarter after quarter Cipolla has delivered under his leadership and it may be that the stock has entered that territory that we see from time to time when businesses have a great the three year run and it's essentially this was a phenomenal quarter but it wasn't perfect because now because we're greedy we wanna see you beating on everything and Radi race and guidance headed almost did meet on everything but actually I think I know why the shares were down it was announced that they're limited time Carne Asada meat product it is going to run off November so everyone's disappointed angry and where do you think and again let me just catch Thanks I don't think there's any pressure whatsoever on Brian Nichols given the job that he's done but I'm curious where you think the growth for AAA comes over the next three years because there was a point in this business history when they were doing so well with the namesake concept that people were looking to the shop house Asian cuisine concept as that's where future growth is gonNA come from we're not going to get as many locations as we have AAA but we're going to get you know a few hundred those have essentially been closed down so do they begin to resurrect some of those ideas or do you think it's just more digital more locations and finding ways to bump up the average ticket price I don't think they're going to go into other concepts quite yet of given their experience they're probably a little gun shy right there that might come down that might come to pass down the road I think they're going to push more into digital and get more people ordering in so they can just walk in and walk out and pick up their stuff that as well as the drive through what they call chip Elaine get terrible name right actually it's kind of funny but I mean reaction it's it's it's it's no worse than the estimate forces on us getting the name aside I think that's going to be a really good driver for the company and that means they can open a second product line of just fulfilling orders through that go through more digital sales and as well as having more customers come through the doors so I think that's where the growth is going to be trial various things Carne Asada apparently did very well well are they going to bring in some breakfast at some point probably so I think they're going to continue expanding what they're working on focusing on their cordial police thing and then maybe a few years down the road might start thinking about other concept's

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